Wednesday, February 16, 2011

China MinZhong

China MinZhong: DBSV maintains Buy, but raises TP to $1.80 from $1.60. Note that grp’s 2Q results In line with consensus, driven by the processing segment which grew by 53% on the back of 31% increase in sales volumes and 17% higher ASP. Delivering value to shareholders. Management has basically executed well and that has reinforced house confidence in management’s competence to deliver growth over the next three to five years….

Growth plans include doubling of cultivation farmland in two years’ time, expanding vegetable processing capacities and selling higher priced vegetables. Believe that grp will be minimally impacted by food inflation. Prospects are positive and has prompted house to upgrade FY11F/FY12F by 13%/10%, pegging it at 9x CY11F PE compared to peers’ average of 14.2x.

No comments:

Post a Comment